La Plata Electric announces rate class adjustments

By Indiana Reed
Special to The SUN

During its regular monthly board meeting on Wednesday, Nov. 18, The La Plata Electric Association (LPEA) Board of Directors proposed approval for a realignment and rebalancing of rates to various customer classes to be in line with LPEA’s wholesale power supplier, Tri-State Generation and Transmission Association’s, new rate structure, resulting in increases in some LPEA classes and decreases in others.

For average residential customers, LPEA estimates an average increase of approximately $5.25 per month on their electric bills, while commercial and industrial members can expect a decrease. This is because Tri-State’s new rate structure places more emphasis on efficient use of the system.

“Going forward we will continue to work with our members on increased energy efficiency and when members use their power, as that is where they have control to lower their costs,” said Dan Harms, manager of rates, technology and energy policy, who is LPEA’s rate specialist. “Tri-State’s new rate structure sends a strong message to LPEA to reduce electrical usage during the late afternoon and evening hours, which fits nicely with our Time of Use rates.”

In response to Tri-State’s new rate structure, and to help ensure accuracy in rate design, LPEA invested in a comprehensive Cost of Service Study, with experienced rate consultants NewGen Strategies and Solutions analyzing what it actually costs LPEA to provide service to every rate class, from residential to commercial to large industrial and more.

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This story was posted on November 25, 2015.